MIRA INFORM REPORT

Report Date :

03.12.2008

IDENTIFICATION DETAILS

Name :	CHATEAU D'AX S.P.A.
Registered Office :	Via Nazionale Dei Giovi, 159, 20030- Lentate sul Seveso (MI)
Country :	Italy
Financials (as on) :	31.12.2007
Date of Incorporation :	28.10.1974
Com. Reg. No.:	MI149-10830
Legal Form :	Joint Stock Company
Line of Business :	Wood Furniture Industry.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	EUR 900.000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Name & address

Chateau D'ax S.p.a.

Via Nazionale Dei Giovi, 159

20030 - Lentate sul Seveso (MI) -IT-

SUMMARY

Fiscal Code	:	00368100152
Legal Form	:	Joint stock company
Start of Activities	:	13/03/1974
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	over 150.000.000 Eur
Number of Employees	:	from 71 to 90

CREDIT ANALYSIS

CREDIT OPINION	:	900.000 - Eur
Score	:	Risk normal
Creditworthness Rate	:	Good
		Under the financial aspect a certain balance is reported which leads
		to a credit with a very limited risk.

ACTIVITY

Wood furniture industry.

Production of wooden furniture.

Manufacture of frames for armchairs and sofas.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00368100152

Foreign Trade Reg. no. : 39186 of Milano since 13/12/1991

Chamber of Commerce no. : 181634 of Como

Chamber of Commerce no. : 890441 of Milano since 14/11/1974

Chamber of Commerce no. : 66926 of Matera

Firms' Register : MI149-10830 since 19/02/1996

V.A.T. Code : 00682600960

Court : 10830 of Monza

Foundation Date	: 28/10/1974
Establishment Date	: 28/10/1974
Start of Activities	: 13/03/1974
Legal Duration Date	: 31/12/2030
Nominal Capital	: 5.000.000	Eur
Subscribed Capital	: 5.000.000	Eur
Paid up Capital	: 5.000.000	Eur

MEMBERS

Colombo

Antonio

Born in Lentate sul Seveso

(MI)

on 23/11/1947

- Fiscal Code : CLMNTN47S23E530C

Residence :

Via

Nazionale Dei Giovi

, 152

- 20030

Lentate sul Seveso

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	03/07/2008

No Protests registered.

Colombo

Tiziano Walter

Born in Como

(CO)

on 06/10/1952

- Fiscal Code : CLMTNW52R06C933K

Residence :

Via

Nazionale Dei Giovi

, 176

- 20030

Lentate sul Seveso

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney General	10/12/2002

No Protests registered.

COMPANIES CONNECTED TO MEMBERS

*checkings have been performed on a national scale.

*In this module are listed the companies in which members hold or held positions.

COLOMBO

ANTONIO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
ARMONIA S.R.L.	Lentate sul Seveso (MI) - IT -	04608420966	Sole Director	Active	Registered
AXCO S.R.L.	Cadorago (CO) - IT -	01160250138	Attorney General	Active	Registered
COLWA S.A.S. DI COLOMBO ANTONIO E C.	Lentate sul Seveso (MI) - IT -	04552360150	General Partner	Active	Registered
ELMA SPORT S.R.L.	Cermenate (CO) - IT -	01649570130	Sole Director	Dismiss	Ceased
IMMOBILIARE SANDI - S.R.L.	Biella (BI) - IT -	81066610023	Sole Director	Dismiss	Ceased
MONTALBANO S.P.A.	Giussano (MB) - IT -	03530010150	Attorney General	Active	Registered
WINNING S.R.L.	Lentate sul Seveso (MI) - IT -	07488590154	Sole Director	Dismiss	Ceased

The indication "REGISTERED" as Firm Status could refere to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

CAPITAL SHAREHOLDERS

Style / Name	Seat / Address	Fiscal Code	Owned Shares	% of Ownership
Colombo Antonio	Lentate sul Seveso - IT -	CLMNTN47S23E530C	1.043.450 .Eur	20,86
Colombo Tiziano Walter	Lentate sul Seveso - IT -	CLMTNW52R06C933K	1.043.450 .Eur	20,86
Cordusio Societa' Fiduciaria Per Azioni	Milano - IT -	01855720155	2.913.100 .Eur	58,26

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
Ma.Tra.X S.R.L.	Altamura - IT -	03848650721	4.080 .Eur	40,00	Active
Sofaland S.R.L.		04292050723	23.256 .Eur	24,00	Active

STRUCTURE AND COMPANY ACTIVITY

In order to carry out its activities the firm uses the following locations:

-

Legal and operative seat

since 01/01/1974

in :

Via

Nazionale Dei Giovi

, 159

- 20030 -

Lentate sul Seveso

(MI)

- IT -

PHONE

: 0362/5301

-

Branch

(Workshop )

since 15/07/1981

in :

Via

Pozzo

, 6

- 22069 -

Rovellasca

(CO)

- IT -

-

Branch

(Store )

since 15/09/1988

in :

Via

Parini

, 8

- 22069 -

Rovellasca

(CO)

- IT -

-

Branch

(Warehouse )

in :

Viale

Industria

, 9

- 20030 -

Lentate sul Seveso

(MI)

- IT -

PHONE

: 0362/5301

-

Branch

(Warehouse )

since 27/02/2003

in :

Zona Industriale

Pip La Martella Lotto D10-d23

- 75100 -

Matera

(MT)

- IT -

PHONE

: 080/3165411

-

Branch

(Warehouse )

since 15/06/2007

in :

Via

Pozzo

, 2

- 22069 -

Rovellasca

(CO)

- IT -

-

Branch

(Warehouse )

since 01/03/2008

in :

Via

N.paganini

, 8/10

- 22069 -

Rovellasca

(CO)

- IT -

Employees

: 74

Fittings and Equipment

for a value of 1.030.000

Eur

Stocks

for a value of 21.910.000

Eur

Vehicles

for a value of 390.000

Eur

Trade organization: direct or by agents.

Sales area on a national scale.

Transports are usually done by own vehicles.

The company sells mainly to retailers and local consumers

To purchase foreign products the firm uses the following channels :

- direct orders to foreign companies

Export represents more than 50% of the global turnover.

Products abroad are placed by :

- its own sales net-work

- its own agents

Company generally accepts payments with terms of 60/90 days.

Main sales modalities: issue cheques and bank transfers.

Purchase terms: 60-90-120 days.

Subject company generally settles its engagements by issueing of

cheques and cash orders.

Import comes generally from the following nations:

- Austria

- Francia

- Belgio

- Gran Bretagna

- Islanda

- Ungheria

Export is mainly towards:

- Austria

- Belgio

- Francia

- Germania

- Gran Bretagna

- Grecia

- Irlanda

- Islanda

- Ungheria

- Bulgaria

- Stati Uniti

- GIAMAICA

- Rep.di Guinea

- Somalia

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Changes to the legal form

Former legal form	New legal form	Changement Date
Other forms	Joint stock company	07/12/1979

Ex-Members / Ex-Positions

Mariani

Umberto

Born in MEDA

on 22/01/1951

- Fiscal Code : MRNMRT51A22F078S

Residence :

Via

FARGA

, 13

- 20036

Meda

(MB)

- IT -

Position

Permanent Auditor

Benzoni

Domenico

Born in Cermenate

on 19/06/1946

- Fiscal Code : BNZDNC46H19C516Q

Residence :

Via

Kennedy

, 2

- 22072

Cermenate

(CO)

- IT -

Position

Temporary Auditor

Colombo

Antonio

Born in Lentate sul Seveso

on 23/11/1947

- Fiscal Code : CLMNTN47S23E530C

Residence :

Via

Nazionale Dei Giovi

, 152

- 20030

Lentate sul Seveso

(MI)

- IT -

Position

Procurator

Colombo

Tiziano Walter

on 06/10/1952

Position

Attorney General

Fusetti

Antonio

on 05/06/1941

Position

Permanent Auditor

Galliani

Franco

on 20/03/1947

Position

Permanent Auditor

Cavenaghi

Giulio

on 22/06/1946

Position

Temporary Auditor

Colombo

Pierangela

Born in CARATE BRIANZA

on 05/12/1959

- Fiscal Code : CLMPNG59T45B729N

Residence :

Via

BRUNO BUOZZI

, 11

- 20045

Besana in Brianza

(MB)

- IT -

Position

Temporary Auditor

FUSETTI

ANTONIO

Born in SEREGNO

on 05/08/1941

- Fiscal Code : FSTNTN41M05I625I

Residence :

Via

INDIPENDENZA

, 44

- 20036

Meda

(MB)

- IT -

Position

Temporary Auditor

CAVENAGHI

GIULIO

on 22/06/1946

Residence :

Via

MIGLIOLI

, 18

- 20045

Besana in Brianza

(MB)

- IT -

Position

Permanent Auditor

Curioni

Stefano

Born in Mariano Comense

on 16/09/1967

- Fiscal Code : CRNSFN67P16E951B

Residence :

Via

Monte Nero

, 4

- 22044

Inverigo

(CO)

- IT -

Position

Temporary Auditor

Former seats

-

Branch

(Factory )

since 01/07/1989

until 30/11/1997

Via

OBERDAN

- 20030

- LENTATE SUL SEVESO

(MI)

- IT -

-

Branch

(Factory )

since 04/11/1991

until 30/11/1997

Via Privata

TERRAGNI

- 20030

- LENTATE SUL SEVESO

(MI)

- IT -

-

Branch

(Warehouse )

since 15/11/1976

until 30/11/1997

Strada

PROVINCIALE LA PIODA

- 22071

- CADORAGO

(CO)

- IT -

-

Branch

(Warehouse )

since 01/01/1999

Contrada

TORRE LA MACCHIA

- 70022

- ALTAMURA

(BA)

- IT -

-

Branch

(Warehouse )

since 20/07/2000

Via

DELL'AGRICOLTURA

- 75100

- MATERA

(MT)

- IT -

-

Branch

(Warehouse )

since 20/07/2000

Contrada

SGARRONE

- 70022

- ALTAMURA

(BA)

- IT -

PAYMENTS ANALYSIS

The average term of debts to suppliers is shorter than the sector one.

PAYMENTS SCORE : - No insolvency

CREDIT REVOLVING

The subject of inquiry has been monitored by our company:

During the last 12 Months : n. 1 times.

PROTESTS

Protests checking on the subject firm has given a negative result.

LEGAL PROCEDURES

None reported, standing to the last received edition of the Official Publications.

IMMOVABLES

*No specific (mortgage/cadastrial registrations) inspections have been requested.

Immovable Type	Value
Real estates	16.588.081 .Eur

NB.: For Capital Companies the value of the Immovables is the one reported in the last available financial documents.

FINANCIAL AND ECONOMICAL ANALYSIS

Subject is active since 1974

During the last years, it recorded positive net results (r.o.e. 3,03% in 2007)

The operating result in 2007 was positive (4,71%)

The analysis shows a fair financial position as the indebtedness volume is acceptable (1,78)

The exposure towards banks is slightly high, the recourse to suppliers' credit is limited below the sector's average.

Payments are supported by good current assets.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2007

(in Eur

x 1 )

Item Type	Amount	Source
Sales	247.717.219	filed balance sheet
Profit (Loss) for the period	1.028.339	filed balance sheet

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	245.524.263	filed balance sheet
Profit (Loss) for the period	1.923.945	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	227.724.044	filed balance sheet
Profit (Loss) for the period	2.515.053	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	220.517.658	filed balance sheet
Profit (Loss) for the period	4.773.719	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	214.762.990	filed balance sheet
Profit (Loss) for the period	-750.876	filed balance sheet

BALANCE SHEETS

From our constant monitoring of the Public Administration, actually, no more recent balance sheets result to be filed.

Balance Sheet as at 31/12/2007 - Months 12 - Currency Eur - Amounts x 1

Balance Sheet as at 31/12/2006 - Months 12 - Currency Eur - Amounts x 1

Years		2007	2006
	BALANCE SHEET ACCOUNTS
.
ASSETS
CREDITS TO SHAREHOLDERS
FIXED ASSETS ( NET )		23.816.487	23.102.986
. Intangible assets		3.085.625	1.483.236
. Tangible fixed assets		18.782.700	19.671.226
. . Land and buildings		16.588.081	16.730.020
. . Plants, Equipm.and Machinery		1.025.394	797.981
. Long-term Investments		1.948.162	1.948.524
. . Financial loans		1.948.162	1.948.524
. . Own shares
CURRENT ASSETS		104.407.402	118.408.096
. Stock		21.913.784	24.916.858
. Credits		71.909.292	83.434.012
. . Credits to clients		57.818.019	76.702.866
. . Other credits		14.091.273	6.731.146
. Short-term financial assets
. Liquid assets		10.584.326	10.057.226
ACCRUED INCOME-DEFERR. ASSETS		75.393	46.093
TOTAL ASSETS		128.299.282	141.557.175
.
LIABILITIES
NET WORTH		33.934.942	32.906.604
. Company's capital		5.000.000	5.000.000
. Reserves		25.982.658	2.617.284
. Reserves company's own shares
. Retained profits (losses)		1.923.945	23.365.375
. Profit (loss)		1.028.339	1.923.945
PROVISION FOR RISKS AND LOSSES		708.185	1.056.880
SEVERANCE INDEMNITY FUND		1.620.076	1.631.026
DEBTS		91.542.162	105.436.808
. Financial M/L terms		20.400.389	18.223.292
. . Financial M/L term banks		20.400.389	18.223.292
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		30.978.348	37.400.612
. . Financial short-term banks		30.978.348	36.367.698
. . Financial short-term bonds			1.032.914
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		37.458.815	48.364.027
. Sundry M/L debts
. Sundry short-term debts		2.704.610	1.448.877
ACCRUED EXPENSE		493.917	525.857
TOTAL LIABILITIES		128.299.282	141.557.175

PROFIT AND LOSS ACCOUNTS

OUTPUT VALUE	248.770.504	253.875.482
. Revenues from sales/services	247.717.219	245.524.263
. Change of stock (products)	-1.203.072	6.628.601
OPERATING EXPENSES	242.719.217	247.503.911
. Purchasing expenses	122.632.615	129.758.842
. Change of stock (raw material)	1.868.156	516.788
. Expenses from services	109.961.111	109.542.611
. Expenses from leasing	1.261.411	800.377
. General expenses/sundry charges	663.595	688.432
. Staff expenses	4.812.798	4.514.163
. Depreciation/Devaluation costs	1.519.531	1.682.698
FINANCIAL REVENUES (CHARGES)	-3.617.336	-1.543.931
. Financial charges	-3.839.690	-1.797.416
. Financial revenues	222.354	253.485
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)	53.600	-750.643
PROFIT (LOSS) FOR THE PERIOD	2.487.551	4.076.997
TAX	1.459.212	2.153.052
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)	1.028.339	1.923.945

RATIOS

	Item	O.V.	as at 31/12/2007	as at 31/12/2006	Sector Average
Fixed assets ratio	Units	=> 1	2,34	2,28	1,55
Net Short-term indebtedness	Units	- 1	1,78	2,34	3,34
Current ratio	Units	=> 1	1,46	1,35	1,19
Acid Test Ratio-Liquidity Ratio	Units	=> 1	1,15	1,07	0,76
Return on Sales	%		1,02	1,46	3,16
Average stock waiting period	dd		31,82	36,50	70,84
Credits to clients average term	dd		84,02	112,46	114,92
Debts to suppliers average term	dd		57,63	72,50	150,50
Net financial revenues/ charges incidence	%		- 1,46	- 0,62	- 1,36
Labour cost incidence	%		1,94	1,83	18,31

O.V. = Optimal Value. When not present refer to the sector's.

A coloured item indicates the opinion of the rate during the last financial year

(green=good; orange=not optimal; red=insufficient; n.c.=not computable)

CREDIT OPINION

On the basis of the above mentioned, and the sales volume obtained, we deem that the maximum exposure for short and medium term transactions ( 90 - 120 days ) could be of:

900.000 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	3.839.216
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expences average in the region (in Eur.) :

- per food products	:	460
- per non food products	:	2.090
- per energy consume	:	114

SECTOR DATA

The values are calculated on a base of 1.984 significant companies.

The companies cash their credits on an average of 114 dd.

The average duration of suppliers debts is about 150 dd.

The sector's profitability is on an average of 3,16%.

The labour cost affects the turnover in the measure of 18,31%.

Goods are held in stock in a range of 70 dd.

The difference between the sales volume and the resources used to realize it is about 1,15.

The employees costs represent the 18,58% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistically the trade activity passes through serious crises.

The area is statistically considered lowly risky.

In the region 50.886 protested subjects are found; in the province they count to 24.765.

The insolvency index for the region is 0,55, while for the province it is 0,66.

Total Bankrupt companies in the province : 22.523.

Total Bankrupt companies in the region : 39.612

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.90
UK Pound	1	Rs.74.30
Euro	1	Rs.63.42

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions